Northern BC Economic Development Vision and Strategy Project Regional Development Brief: BRITISH COLUMBIA

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1 Northern BC Economic Development Vision and Strategy Project Regional Development Brief: BRITISH COLUMBIA There is a long history of direct regional development experience in BC at both the provincial and federal levels. The purpose of this brief is to outline a variety of past regional development programs in BC and present some of the main features of the most recent initiatives the BC Heartlands Strategy and the Northern Development Initiative. 1 Provincial Programs: BC has implemented a variety of regional development programs over the years: BC Regional Development Summary Date Model Description 1950s- 1970s Province Building: Road to Resources Province building: economic expansion, infrastructure dev. and access to resources Ministers of State and Regional Development Officers (RDO) Minister of Regional Economic Development (1989) Regional Economic Development Offices Northern Development Commission Regional districts formed and assigned a Minister of State. Regional offices opened in eight regions, consisting of regional development officer (RDO), a regional development liaison officer (RDLO) and clerical staff. Mandate to establish regional priorities, implement government programs, and conduct evaluations and reporting. Five regional offices established with Regional Economic Development Officers (REDOs). REDOs responsible for a more community-based approach towards economic development and implementation of government programs. Established by the Northern Development Act and headed by a Commissioner supported by five staff servicing three Northern regions. NDC mandate for advocacy and consultation with small fund available to assist development projects Ministry of Community Development, Cooperatives, and Volunteers Variety of community economic development programs and transition funds: e.g. Community Enterprise Fund 2000 Provincial Liberal Government Macro environment: tax reductions, deregulation, Northern Caucus Community Charter Heartland s Strategy Northern Development Init. labour flexibility Tourism; Transportation; First Nations interim measures; Sector marketing and support; Trust (Lax et al., 2001) 1 The main point from the above chart, however, is to contrast what we know about the long-term process of community and regional development with the sporadic three-five year policy horizons of various provincial governments. The relatively sustained regional expansion and infrastructure policies of the W.A.C. Bennett government from the 1950s to the early 1970s are an exception for hinterland regions in BC. 2 1 Please note that there are other development programs not listed, e.g. the Fair Share agreement in the BC Peace, Build BC (BC 21), etc. 2 For example: hydro development; rail policy; the ferry system; provincial highway upgrades; Roberts Bank. 1

2 The two most recent provincial initiatives pertaining to regional development in the North include the BC Heartlands Strategy and the intention to create a Northern Development Initiative (NDI) Trust. Both strategies are summarized below: The BC Heartlands: The Provincial Liberal Government has recently launched its Heartlands Strategy, intended to create economic opportunities and greater economic certainty in BC s rural areas. The strategy re-enforces a macro-policy approach of tax relief, regulatory streamlining, and labour flexibility; however, there are a variety of specific mechanisms designed to stimulate various sectors. There is no particular vision attached to the strategy and also no specific reference to a delivery vehicle beyond the specific program linkages. Below is a summary of strategies for the Northern regions: Cariboo Northeast Northwest Mining: increased exploration; less red tape Forestry: timber access; enhanced flow of timber; revenue sharing with FN Transportation: $135 million including Highway 16 and 37 Tourism: expanded cruise ship capacity at Prince Rupert; provincial marketing fund; resort task force; 2010 Forestry: timber access; value-added support (Advanced Tech Centre at UCC); First Nations (Economic Measures Fund) Agriculture: federal business development partnership; new use of ALR Tourism: $1.25 million marketing fund; Resort task force; 2010 Olympics Transportation: Highway 20 upgrades Film: funding for Cariboo- Chilcotin and Prince George Film Board; tax credits for films outside of Vancouver/Victoria Energy development more land-base certainty and opportunities for First Nations through initiatives like the commitment of $1.9 million to further Treaty 8 First Nations participation in the oil and gas industry. Forestry: same as other Transportation: $153 million for transportation infrastructure improvements over the next three years, $10 million annually in royalty credits toward construction and maintenance of resource roads Tourism: Same as Northeast See: Northern Development Initiative: The Government has announced its intention to establish a Northern Development Initiative (NDI) aimed at giving Northern communities the funding, control and mechanism to identify and pursue new opportunities aimed at stimulating economic growth and job creation in their regions. Specifically, this initiative is intended to give the NDI s Board of Directors and its four Regional Advisory Councils (RACs) the ability to manage a $135 million Trust that can be used for strategic investments in forestry, pine beetle recovery, transportation, tourism, mining, energy, Olympic opportunities, small business and sustainable economic development. 2

3 The NDI will be headquartered in Prince George and managed by a Board of Directors that will act on behalf of four Regional Advisory Councils that are broadly representative of the communities and residents in each of the four participating regions. These regions include the Peace, Prince George, the Northwest, and the Cariboo-Chilcotin-Lillooet, whose boundaries will be defined in the NDI founding legislation and aligned around groupings of provincial electoral districts. The funding for this initiative will be granted by a supplementary Estimate from the proceeds of the $1 billion BC Rail Investment Partnership anticipated in fiscal 2003/04. The funding will be held in the Northern Development Initiative Trust, which will be established in the proposed legislation. See: 2 Federal Programs: The Federal government also provides direct development assistance through programs such as Western Economic Diversification, Community Futures, Indian and Northern Affairs Canada, Industry Canada, the Canadian Rural Partnership, and Human Resources Development Canada (and historically through a variety of regional development programs dating back to the 1950s). The Federal government is generally praised for providing a much more consistent and coherent approach to rural policy and regional development. Particularly since the mid-1990s, the Feds have sought to design and integrate various rural programs through a common framework. The framework is the responsibility of the Canadian Rural Secretariat, although this program has not been particularly well funded concentrating more on administration than program delivery. Also, a federal commitment to the regionalization of development programs through such agencies as Western Economic Diversification and the Atlantic Canada Opportunities Agency is widely regarded as a successful approach to program delivery to meet the challenges of a culturally and geographically diverse nation. Stated principles guiding federal rural policy development are as follows: 3 1. Recognize rural strengths and core values and build on them. Encourage the development of community and regional strategic plans to optimize comparative advantages of specific communities, and to minimize undesirable competition among communities in the same region. 2. Incorporate increased flexibility into program design, eligibility criteria, implementation and monitoring. 3. Foster, promote and utilize community-based program design, planning, implementation, and monitoring to ensure accessibility and to achieve local management of the development process. 4. Continue to investigate multi-partnering initiatives involving the federal government. 5. Promote rural human resource development. 6. Promote the development of leadership skills and community capacity building to enable communities to work cooperatively for local community development. 3 Canadian Rural Secretariat Rural Dialogue: Rural Canadians Speak Out. 3

4 7. Support policies and programs which promote a job-creating environment and provide tools for achieving meaningful employment. 8. Promote re-investment of capital in rural communities. 9. Ensure tax structures better reflect rural realities and support rural economic diversification, northern living and transportation expenses. 10. Integrate and coordinate the resources of multiple government departments in support of the rural sector. 11. Ensure that any new policy/program would take into account economic, social, and environmental impacts on rural areas. 12. Promote rural Canada in urban centres to ensure better appreciation of the role that rural communities play. Policy Suggestions for BC: The following page provides a summary of various policy prescriptions, as presented in various reports, for rural and Northern BC. 4

5 BC Regional Development: Suggested Policy Summary Progress Board, 2002 Hutton, 2002 Ference Weiker, 2003 Other: Terluin; OECD restoring land base certainty regional development as a recommendations re: capacity improve access and quality of and productivity strategic priority building focuses on life through infrastructure clearly define and implement secure future of regional intermediary organizations in develop policies to valorise fair and durable consultation resource industries and the rural context natural and cultural amenities, process with First Nations employment arguing for enhanced especially in rural areas streamline treaty process education, human capital, and research role through colleges strengthen cluster conditions encourage business- regional development (K-12, and universities by enhancing local social Aboriginal partnerships completion rates, adult financing component capital market-based forest reforms education, cultivate support innovation system invest in human capital performance-based Code entrepreneurship, access to components: research development of clusters additional community-based post-secondary institutes and organizations; link universities with local forest tenures infrastructure and land use for sources of funding for R&D; economic actors (regional finalize remaining LRMPs the new regional economy technology transfer strategies for innovation) reduce business taxes and governance and process organizations and facilitators; public-private partnerships for regulatory burden issues (stronger regional education and training; private finance initiatives identify large-scale private voice and role in sources of business capital; diversify rural economies and sector financed and managed development) agency and institutional create positive urban-rural growth-driving resource support network formation support for commercialization linkages projects (coal-bed methane, re-invention of regional advocates for stronger focus on wealth creation natural gas, mines) districts; all undergo growth community regional linkages rather than redistribution private development of strategies improve capacity of local electricity new secretariat for regional actors pursue offshore oil and gas development strengthen cooperation of tourism marketing benchmarking support emerging clusters stakeholder engagement local actors (creation and maintenance of networks) consider resource dividend adjust administrative engage participation of regions: feeling disconnected structures to respond to bottom-up and isolated by macro policy use a comprehensive approach territorial development plan BC Progress Board. (2002). Restoring British Columbia s Economic Heartland. Vancouver: BC Progress Board. Hutton, T. (2002). British Columbia at the Crossroads. Vancouver: BC Progress Board. Ference Weiker & Company. (2003). Promoting Innovation and Commercialization in Rural BC. Vancouver: Ference Weiker & Company. Terluin, I. (2003). Differences in economic development in rural regions or advanced countries: an overview and critical analysis of theories. Journal of Rural Studies, 19: OECD. (1996). Better Policies for Rural Development. Paris: OECD. BC Progress Board publications are available on the web at: 5

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